Are you thinking about buying life insurance for the first time? That could be a wise decision. Your spouse, children, and other dependents could face significant financial challenges after you pass away. Life insurance can be a great way to provide them with financial stability.
 
There is a wide range of types of life insurance available to meet many different needs. You may find your options overwhelming. You also may be unsure of how much coverage you need or how the policy will interact with your group life insurance.
 
Below are a few common questions and answers about purchasing life insurance. A financial professional can help you answer additional questions and find the right protection for your needs.

I have life insurance through my employer. Do I still need an individual policy?
 
Life insurance is a popular employer benefit, and it may be a part of your benefit package. In many instances, group life insurance is relatively affordable. If you have group coverage, you may feel like you don’t need additional protection.
 
However, it’s likely you still need additional protection above and beyond your group coverage. Many group policies have a cap on coverage amounts, and that maximum may not be sufficient for your needs. Also, there’s the chance that you may lose your job or change employers. The new employer may not offer the same level of protection. An individual policy helps you stay covered no matter what happens in your career.

What’s the most cost-effective strategy to get the coverage I need?
 
Trying to stick to a tight budget. If so, you may find it difficult to get the coverage you need with affordable premium payments. Fortunately, there are a couple ways to maximize your coverage and keep your premiums under control. One is to opt for a term policy. This provides coverage for a limited duration, such as 10 or 20 years. Everything else being equal, a term policy is usually more affordable than a permanent policy.
 
Another strategy is to buy the policy earlier rather than later. Your premiums are based on your age and your health. The older you are, the higher your premiums are likely to be. There’s also the risk that you may develop a health issue as you get older. You can avoid that risk by purchasing life insurance as soon as you identify a need.

How much life insurance do I need?
 
There’s no universal answer for how much coverage is right for you. Many people use a simple formula, such as a multiple of income, to estimate the right coverage amount. However, those equations and formulas aren’t based on your unique needs.
 
The best approach is to consider the financial needs and difficulties your family may face after you pass away. Would they miss your income? Would they face sizable debts? Do you want to help them achieve certain financial goals, like retirement or higher education? A financial professional can help you estimate the cost of these objectives and project an accurate funding need.
 
Ready to develop your life insurance strategy? Let’s talk about it. Contact us today at Financial Solutions Group. We can help you analyze your needs and find the right coverage for you. Let’s connect soon and start the conversation.
 

Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17965 – 2018/9/4

​According to recent studies, life insurance ownership is on the decline. Nearly 56 percent of Americans don’t own coverage. Among those that do, 40 percent say they don’t have enough. In fact, LIMRA, an insurance industry organization, estimates that Americans as a group are underinsured by more than $15 trillion.1
 
You may believe that you don’t need coverage. However, if your death would cause financial difficulty for others, you likely need some level of protection. You may need insurance to provide for your spouse and children after your death. Perhaps you need a policy to protect your business partners. You might be required to own coverage to cover an outstanding loan.
 
Whatever your reason, there’s likely a policy out there that fits your goals and your budget. If you’ve been putting off life insurance, you may want to think about why. It’s possible that you’ve bought into false ideas. Below are a few common myths about life insurance and why you shouldn’t believe them:

Life insurance is too expensive.
 
The most common reason people don’t buy coverage is that they believe it’s too expensive. According to LIMRA, 83 percent of those who don’t have life insurance say they can’t afford it. In fact, a study found that most Americans believe life insurance costs more than double what it actually does.1
 
A term policy could help you fit life insurance into your budget. These policies provide protection for a limited amount of time, such as 10 or 20 years. Term policies are usually more affordable than their permanent counterparts. A financial professional can help you find the right policy for your budget.

I don’t need individual life insurance if I have it at work.
 
Many employers offer life insurance as part of a group benefit package. Some coverage may be free, while additional coverage could be affordable for a discounted cost. If you participate in your employer’s group life insurance plan, you may not feel that you need additional insurance.
 
While group life insurance is a helpful benefit, it doesn’t mean you don’t need your own protection. If you leave your employer, you’ll likely lose your insurance. If your health has declined, you may not be eligible to purchase insurance after leaving your job. Of course, you can avoid that risk by purchasing an individual life insurance policy today.

I’m young and healthy. I don’t need to worry about dying.
 
Life insurance provides protection against the financial fallout from your death. If you’re relatively young and healthy, you may not be concerned about passing away. While it’s possible at any age, there may not be a high likelihood of death for you.
 
However, the best time to buy life insurance is when you’re young and healthy. Life insurance premiums are based in large part on the probability of your death. The older and unhealthier you are when you purchase life insurance, the higher the premiums will be. You can save yourself significant money over the course of your life by purchasing life insurance at a young age.
 
Ready to find the right protection for your needs and budget? Let’s talk about it. Contact us today at Financial Solutions Group. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.thinkadvisor.com/2013/08/30/the-shocking-statistics-behind-the-life-insurance/?slreturn=20180727144059
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17965 – 2018/9/4